Highlights

OPEC’s Quandary: The Double-Edged Sword of Production Cuts
June 16, 2017

Kenneth Grant concludes that OPEC continues to suffer from a double-edge sword. Its cuts in production, reflecting its desire for higher prices, serves to increase financial ability of U.S. producers to extract greater quantities of oil from shale and other producing basins, thereby, resulting in downward pressure on prices and losses in market share.